IT Outsourcing - Slovenia

Slovenia

The IT Outsourcing market in Slovenia is anticipated to witness a significant increase in revenue, with projections indicating that it will reach US$194.00m by 2024.
Moreover, this market segment is expected to exhibit a promising annual growth rate (CAGR 2024-2029) of 8.99%, resulting in a substantial market volume of US$298.40m by 2029.
Additionally, the average Spend per Employee in the IT Outsourcing market is projected to reach US$180.00 in 2024.
When compared globally, United States is expected to generate the highest revenue in this sector, estimated to be US$197.30bn in 2024.
Slovenia's IT outsourcing market is thriving, fueled by a highly educated workforce and competitive pricing.

Key regions: Brazil, Italy, United States, China, Germany

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

Slovenia, a small country in Central Europe, has been experiencing a steady growth in its IT outsourcing market in recent years.

Customer preferences: Slovenian businesses, like many others around the world, are looking to outsource their IT services to cut costs and improve efficiency. Additionally, there is a growing demand for specialized IT services such as software development, cybersecurity, and cloud computing. Slovenian companies are also increasingly looking for outsourcing partners who can provide high-quality services and have strong communication skills.

Trends in the market: One of the key trends in the Slovenian IT outsourcing market is the emergence of small and medium-sized IT service providers. These companies are able to offer specialized services at competitive prices, making them an attractive option for local businesses. Another trend is the increasing importance of cybersecurity services, as businesses look to protect themselves against cyber threats. Finally, there is a growing interest in cloud computing services, as companies seek to take advantage of the flexibility and scalability offered by cloud platforms.

Local special circumstances: Slovenia's location in Central Europe makes it an attractive destination for outsourcing services, as it is well-connected to other European countries. Additionally, the country has a highly educated workforce, with a strong focus on STEM education. This has helped to create a pool of skilled IT professionals who are able to provide high-quality services to businesses.

Underlying macroeconomic factors: Slovenia's economy has been growing steadily in recent years, which has helped to create a favorable business environment for outsourcing services. Additionally, the country has a stable political climate, which has helped to attract foreign investment. However, there are also some challenges facing the Slovenian economy, including high levels of public debt and an aging population. These factors could potentially impact the growth of the IT outsourcing market in the future.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.